State Accuses Piscataway Inventor Of Financial Fraud

PISCATAWAY, NJ — A Piscataway man is accused of selling unregistered financial securities, plus other alleged scams, said New Jersey Attorney General Jennifer Davenport.

The Piscataway resident is Jesse E. Russell, 78.

On Aug. 21, the New Jersey Bureau of Securities sued Russell, two of his companies, plus his wife, Amanda Russell, and daughter, Catalina Russell.

State prosecutors say the family made $3.1 million selling unregistered securities to at least 34 people, including 12 New Jersey residents. Russell used the money for his personal benefit, says the state. He has never been a registered broker with the New Jersey Bureau of Securities.

You can read the lawsuit here.

The state sued Russell in his capacity as CEO and owner of two companies, IncCommunications Services, Inc. (ICS) and IncNetworks, Inc. (INI).

The state also sued a company called Ospina & Russell Enterprises, LLC.

The Wikipedia page for Russell describes him as an inventor who graduated from the prestigious Stanford University. He says he holds patents and works in the field of broadband wireless networks, including 4 and 5G technology. It says online Russell was inducted into the U.S. National Academy of Engineering "for his contributions to the field of wireless communication." Elsewhere online, he describes himself as the "father of the cell phone." (Jesse Russell, Cell Phone Inventor born)

The state alleges Russell asked people to invest in various 5G technology projects, and he also told people he had contracts with the U.S. Department of Housing and Urban Development (“HUD”), the U.S. Department of Transportation and with the city of Baltimore.

None of that was true, says the state.

He also told people if they invested with him, he would return $100 million in funds that he and his companies purportedly held in Ghana. Yet the state says there were no such projects, and no such money to be repatriated from Ghana.

Instead, Russell misused investors’ money for his own benefit, diverting much of this money to bank accounts in China, said the Attorney General.

“Our lawsuit alleges that the defendant lied to his victims to get them to hand over their money, which he then used as his personal slush fund," said Davenport. "We will never tolerate that kind of behavior.”

ICS maintained an office at 200 Cottontail Lane, Somerset, New Jersey. INI is incorporated in Delaware, but also has offices at 200 Cottontail Lane, Somerset, and 25 James Way, Eatontown, New Jersey.

There is no way to contact him or the two companies. They are listed online as business entities, but do not have phone numbers listed.

The state wants Russell to pay fines, pay back restitution to his victims and bar him, ICS, INI and all people associated wtih him from ever participating in the securities industry from New Jersey.

The NJ Bureau of Securities is part of the Division of Consumer Affairs, which is a state agency that aims to protect members of the public who have been victims of scams.

It is critical that investors “Check Before You Invest.” Investors can obtain information, including the registration status and disciplinary history, of any financial professional doing business to or from New Jersey, by contacting the Bureau toll-free within New Jersey at 1-866-I-Invest (1-866-446-8378) or from outside New Jersey at (973) 504-3600, or by visiting the Bureau’s website at www.NJSecurities.gov. Investors can also contact the Bureau for assistance, or to raise issues or complaints about New Jersey-based financial professionals or investments.